Sri Lanka’s First Capital Holdings profits boosted by deferred tax asset
ECONOMYNEXT – Sri Lanka’s First Capital Holdings, a listed investment bank, said March 2018 quarter net profit shot up 943% to Rs990 million from a year ago, helped by recognition of a deferred tax asset.
The group’s total income in the March 2018 quarter rose 28% to Rs1,077 million from a year ago, according to interim accounts filed with the stock exchange.
Net trading income tripled to Rs324 million during the period. March quarter earnings per share were Rs9.78. First Capital Holdings stock last traded at Rs30.80, down 20 cents.
EPS in the year to 31 March 2018 was Rs18.39 with net profit at Rs1.86 billion.
A company statement said First Capital Treasuries, the group’s primary dealer arm, was the key contributor to earnings, reporting a profit after tax of Rs1.67 billion for the year, up from Rs344 million the year before.
This was mainly attributable to net interest income, gain on sale of government securities and a deferred tax asset of Rs845 million, the statement said.
The corporate finance division of First Capital Limited reported a fee income of Rs80 million through structuring and placing Rs 24 billion of corporate debt securities during 2017/18.
First Capital Asset Management Limited, its asset management unit, reported a fee income of Rs38 million for the year 2017/18 with assets under management growing to Rs5.1 billion as at 31st March 2018 frrom Rs 3 billion in March 2017.
First Capital Equities (Private) Limited, the stock broking unit, had sales of Rs78 million for the year.
(COLOMBO, May 31, 2018)